DXP Enterprises buys Tri-Electric

Tri-Electric Supply Co., a single-house electrical distributor in San Antonio, Texas, has suddenly gone from being a traditional, independent electrical supply house to being a unit of an innovative concept firm constructed to pursue integrated supply as a first-tier, single-source provider for the industrial maintenance market. Tri-Electric Supply has been acquired by DXP Enterprises, Houston, Texas, and will become the first electrical supply piece of DXP's MRO puzzle. Terms were not disclosed.

Tri-Electric, with annual sales of approximately $16 million, will become a wholly owned operating unit of DXP, joining Sepco Industries, Wesco Equipment, Strategic Supply and Pelican State Supply. With Tri-Electric in the mix, DXP can offer maintenance, repair and operations (MRO) products ranging from fluid handling equipment, bearings and power transmission equipment, electrical supplies and general mill and safety supplies. DXP also sells a line of valve and valve automation products and is planning to expand in the area of pipe, valves and fittings, to complement this offering, according to Mike Wappler, director of corporate development for DXP.

The purchase of Tri-Electric is the first step in an aggressive growth plan that may have DXP buying electrical distributors with total sales of $100 million to $150 million over the coming year.

As with DXP's other subsidiaries, Tri-Electric will retain its existing management team, led by Curtis Janda and Doug Merrill. The Peacock family, which started Tri-Electric in 1993, has not been directly involved in the day-to-day operations of Tri-Electric for some time, and will be pursuing other ventures following the sale, said Joe Peacock, Jr., president of Tri-Electric.